SEC Listing Standards Could Spark Crypto “ETPalooza”

The listing standards will also dramatically shorten approval times and open the door to products tied to assets like Solana, XRP, and Chainlink. He compared the potential impact to the 2019 “ETF Rule,” which tripled traditional ETF launches, and argued that easier access will position crypto assets for stronger rallies when their fundamentals improve. Hougan called the change a “coming of age” moment.

Crypto ETFs Near Breakthrough Moment

Matt Hougan, Chief Investment Officer at Bitwise, believes the US Securities and Exchange Commission’s (SEC) work on generic listing standards could transform the crypto market and spark what he called an “ETPalooza.” In a note to clients, Hougan said the market is set up for a spectacular end-of-year rally, fueled by factors like rate cuts, growing exchange-traded product (ETP) inflows, dollar concerns, and momentum around tokenization and stablecoins. 

While September’s seasonality weighed on performance, he argued that approvals and legislative progress often take time to impact prices, and the stage is now being set for a broader surge.

Hougan’s note to clients

Currently, every new spot crypto ETP requires a lengthy, one-off SEC review process that can last up to 240 days with no guarantee of approval. Generic listing standards will change this by allowing issuers to launch ETPs for any crypto asset that meets predefined criteria, likely tied to the existence of regulated futures markets on exchanges like CME or Cboe. 

Hougan pointed out that the change would cut approval times to as little as 75 days and unlock a wide range of products, including Solana, XRP, Chainlink, Cardano, Avalanche, Polkadot, Hedera, Dogecoin, Shiba Inu, Litecoin, and Bitcoin Cash.

Hougan pointed to the SEC’s adoption of the “ETF Rule” in 2019 as an example of the potential impact. That change simplified approval processes for traditional ETFs, and led to a tripling in annual launches and a surge in issuers. He expects crypto to follow the same trajectory, with dozens of single-asset and index-based ETPs appearing quickly once the new standards are in place, possibly as soon as October. 

(Source: Bitwise)

While the existence of more ETPs alone won’t guarantee inflows, Hougan thinks that they make it far easier for traditional investors to gain exposure to crypto by turning tokens into recognizable tickers on brokerage platforms. This increased accessibility positions assets to rally more sharply when fundamentals improve.

Calling the shift a “coming of age” moment for the industry, Hougan said the adoption of generic listing standards will be the start of crypto’s entry into the financial big leagues.